Wollit is a credit building service that aims to help improve your credit history by reporting your monthly plan payments to the UK\u2019s 3 major credit reference agencies (CRAs).<\/p>
Wollit aims to help its customers increase their credit score. Users sign up to Wollit on credit building plans that start from \u00a39.99 per month, and Wollit then reports this credit agreement and the monthly payments to the UK\u2019s 3 main credit reference agencies \u2013 Experian, Equifax and Transunion. Wollit also has an add-on tool where monthly rental payments can be reported to the 3 CRAs too.<\/p>
Having on-time monthly payments like these recorded on a credit report can help boost a person\u2019s credit score in the long run.<\/p>
The idea is that in the future, an improved credit score will make a person more likely to be approved for financial products like credit cards, loans or mortgages, and also be eligible for better interest rates.<\/p>
You can sign up to Wollit via its app, which the company says only takes 2 minutes.<\/p>
You\u2019ll be signing up to a 12-month plan that you buy on credit and pay off in 12 monthly payments. Once you\u2019ve chosen a credit building plan (which start at \u00a37.99 per month), you\u2019ll enter into an interest-free loan agreement with Wollit to cover the total cost of it.<\/p>
Wollit reports this agreement and the monthly payments to Experian, Equifax and Transunion. This can help you build a positive credit history, which is a crucial factor affecting your credit score.<\/p>
Wollit can\u2019t guarantee that a user\u2019s credit score will definitely improve, as factors such as a person\u2019s other financial behaviour will affect it.<\/p>
But if a user is sensible with their overall finances, makes their monthly Wollit payments and pays all their other bills on time, then Wollit says some of its customers will see an increase in their credit score within a few months, while others will see a positive difference at the end of their 12-month plan.<\/p>
Wollit Plus costs \u00a39.99 per month (\u00a3119.88 for the year), which includes the Rent Reporting tool. \u201cEssentials\u201d (cheaper) and \u201cPremium\u201d (more expensive) plans were previously available, but have been shelved for now.<\/p>
Wollit says there are no eligibility requirements and there is no credit check when signing up.<\/p>
Wollit is most suitable for people looking to build credit, especially if they have a poor credit history, or haven\u2019t had much credit in the past, so they haven\u2019t had the opportunity to build up their credit file and prove their financial reliability.<\/p>
Wollit\u2019s Rent Reporting tool will report your monthly rental payments to the 3 CRAs. The aim of this is to help boost your credit score, as paying your monthly rent on time shows you are financially responsible and can meet your monthly bill commitments.<\/p>
Wollit will ask permission to look at your personal current account using Open Banking technology, to detect your rent payment and report that you\u2019ve made it to the CRAs. This connection to your bank account will be read-only \u2013 Wollit will only be able to see your transactions, they can\u2019t do anything else to your bank account.<\/p>
Wollit Ltd was founded in 2019 and is a company registered in England and Wales. But its credit building service plans are classed as \u201cexempt credit agreements\u201d, which are unregulated in the UK. This means that users don\u2019t have the protections that typically come with a financial product that is regulated by the Consumer Credit Act.<\/p>
If you give permission for Wollit to have read-only access to your personal bank account, so that it can see your rent payments for the Rent Reporting tool, then Wollit uses a company called TrueLayer to manage this. TrueLayer Ltd is also a company that\u2019s registered in England and Wales, plus it\u2019s authorised and regulated by the Financial Conduct Authority.<\/p>